Gold Technical Analysis in Forex – Is Gold’s Downtrend Still Going?

After hitting a peak of $2956 on February 24, gold (GOLD) has been under a lot of selling pressure. It’s struggling to climb back up, and every time it tries, more sellers step in, pushing it down to lower levels. Traders need to keep a close eye on how the price moves at important spots and tweak their plans as things change.

Gold Trend Analysis Across Different Timeframes

Daily Chart:

Currently, the range between $2880 and $2884 acts as a key support level. If this level holds, it could present an opportunity for buyers to enter and trigger an upward wave. However, a break below this range, with a daily candle closing beneath it, would signal the continuation of the downtrend.

Gold symbol (XAUUSD) on the daily timeframe on the Trendo trading platform

Hour Timeframe | Double Top Pattern Formation

An analysis of the 1-hour chart reveals that after forming a double top pattern at $2956, the price has declined in a step-like manner and is now at a level where strong reactions have been observed in the past. If this support level is broken, further price declines can be anticipated.

Gold symbol (XAUUSD) on the one-hour timeframe on the Trendo trading platform

What Could Happen with Gold? Potential Scenarios for Gold

Bullish Scenario:

If the price encounters buyer demand within the $2880 - $2884 range and strong reversal candles such as a bullish pin bar or bullish engulfing pattern form, we may see a corrective wave towards the $2900 - $2920 range. In this case, breaking this resistance could pave the way for further growth.

Bullish scenario for gold on the 15-minute timeframe on the Trendo trading platform

Bearish Scenario:

If the price loses this support and strong bearish candles close below it, the next support level would be in the $2860 - $2865 range. A break of this level could accelerate the price decline towards $2840.

Gold bearish scenario on the 15-minute timeframe on the Trendo trading platform

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What the Indicators Say?

RSI Indicator: The RSI is in the oversold zone, which may increase the likelihood of a short-term correction.

MACD Indicator: The MACD is still in a bearish phase, indicating that selling pressure in the market persists.

Moving Averages Indicator: The price is below both short-term and mid-term moving averages, confirming the downtrend.

Review of indicators in the gold symbol on the Trendo trading platform

Wrapping It Up

The $2880 - $2884 range plays a crucial role in the future trend of gold. If this support holds, there is a possibility of a corrective upward wave. However, if it breaks, the downtrend will likely accelerate. Please note that this analysis is not a direct trading recommendation and should not be considered as a definitive signal. Forex trading carries high risk and may lead to the loss of capital. Therefore, it is important to enter trades with a logical analysis, a proper strategy, and sound risk management.

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